Confidence in the continued growth of UK house prices has fallen to a 15-month low amongst homeowners, according to the latest Zoopla Housing Market Sentiment Survey.
The survey of 6,746 homeowners found that the proportion of homeowners expecting property prices in their area to increase over the next six months has fallen from 92 per cent three months ago to 88 per cent, the lowest level since July 2013.
Homeowners in the East of England are the most bullish about continued house price rises, with 91 per cent expecting property values to increase over the next six months.
The South West has seen the most significant drop in confidence over the past three months, with the proportion of homeowners anticipating further price gains falling from 95 per cent three months ago to 85 per cent today.
Following the implementation of stricter affordability criteria for borrowing, 39 per cent of those homeowners surveyed stated that they thought it was more difficult to get a mortgage now than it was three months ago.
Lawrence Hall of Zoopla.co.uk says it’s harder to decipher the signals from the property market than it was a few months ago.
“With the lengthier funding approval process following the Mortgage Market Review and fewer homeowners predicting that house prices will continue to rise in the short term, the coming months will be crucial to determine if the housing market recovery has stalled or simply paused for breath.”
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